Residential customers using about 1,000 kilowatt hours a month could see an increase of about $11 in their monthly bills, according to a company news release.

Wes Reeves, Xcel spokesman, said the rate represents the average Texas customer.

The utility is proposing to split the 10.5 percent increase in two steps. The first half of the increase would be in March and the full hike would be applied in July, according to the release.

The utility company filed a proposal with the Public Utility Commission of Texas on Tuesday, Jan. 7, to increase its revenues by $52.7 million a year, according to the release.

While the utility does not directly provide power to a majority of Lubbock residents, it sells electricity wholesale to Lubbock Power & Light.

“There will be no effect to LP&L retail customers,” said Chris Sims, LP&L spokesman.

Xcel Energy will have to seek permission at the federal level to raise rates to its wholesale customers, which includes the city’s power provider.

Xcel Energy retails power to about 375,000 customers in the Texas Panhandle and eastern New Mexico, according to Reeves.

The utility company aims to recover costs incurred in improvements to its regional system, according to the news release.

The utility company spent more than $386 million from July 2012 to June 2013 in improvements including the Jones Generating Station near Lubbock, new transmission lines and improved distribution lines.

The proposal was submitted to the 80 Texas cities the utility serves.

The utility is also seeking to increase its rates as it anticipates losing wholesale customers such as electric co-ops and municipalities, Reeves said.

“That’s actually a planned decline,” he said. “The existing contracts we had will be expiring in 2019.”

The utility hopes to grow more retail customers as its wholesale market declines, according to the release.

LP&L is one of those wholesale customers whose contract with Xcel will expire in five years, according to Sims.

At present, city officials are considering options for a power source that include:

■ Building a power plant in Lubbock.

■ Continuing to buy power from Xcel.

■ Finding another wholesaler to purchase power from.

■ Purchasing from multiple wholesalers through the Southwest Power Pool integrated marketplace.